Business

Canada's GDP rebounded to pre-pandemic level in November 2021 – CBC News

Published

3 years ago

February 1, 2022

Canada’s economy grew by 0.6 per cent in November of last year, making it the sixth consecutive month of economic expansion prior to the rapid spread of the Omicron variant of the coronavirus, according to GDP numbers released by Statistics Canada Tuesday.

The economy rebounded to pre-pandemic levels, with real GDP 0.2 per cent above its February 2020 level.

While real GDP slowed slightly from October’s 0.8 per cent growth, most sectors experienced economic expansion.

Growth in manufacturing and wholesale had the largest contribution to the rise in GDP in November.

Growth beat consensus expectations of 0.4 per cent, according to TD Economics senior economist James Orlando.

“This was a very solid report as there was a broad increase in output across most industries,” said Orlando.

Restaurant owner says business was ‘booming’

Orlando warned, however, that some of the gains made in November were likely slowed in December and January, as the rapid spread of the highly transmissible Omicron variant impacted economic activity.

That was definitely Mark Kitching’s experience. The owner of Waldo’s on King bistro and wine bar in London, Ont., says his business had been on an upward trajectory since July, which had made him feel that tough times were behind him.

“Before Omicron hit, [business] was booming,” he said.

Kitching says he was able to hire three more workers, bringing his total team to 16.

Then Omicron hit.

Mark Kitching, owner of Waldo’s on King bistro and wine bar in London, Ont., said business was on the rise before Omicron hit. (Mark Kitching)

“It just dropped off completely,” the restaurant owner said.

Kitching started receiving calls to cancel Christmas parties once it was announced that capacity limits were being reinstated, and when January hit, he had to lay off workers.

Although the industry will likely recover again, says Kitching, the constant back-and-forth between lockdowns and reopenings has left restaurant owners dazed.

“I’m sure that it is going to get better, just right now, I don’t feel anything,” he said.

Economy expected to get back on track

Orlando says he expects GDP to rebound in the coming months.

“Given that we are likely past the worst of the Omicron wave, we expect a strong boost to monthly GDP in February and March,” he said.

Desjardins economist Royce Mendes says the strong growth in November means that fourth-quarter GDP likely surpassed the Bank of Canada’s 5.8 per cent forecast.

The confirmation of strong economic growth prior to the spread of Omicron means the Bank of Canada will likely be able to stick to its commitment of raising the interest rate in the near future to combat inflation.

“As a result, the Canadian central bank remains on track to lift its policy rate in March,” said Royce.

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Business

Carry On Canadian Business. Carry On!

Published

7 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

11 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

11 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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